SUBJECT/RECOMMENDATION:
Title
Approve an amendment to that certain Service and Access Agreement and Schedule D therein (now known as the Site License Agreement and formerly known as the Tower Lease) dated June 2, 2002 (Agreement), between L3Harris Corporation of Lynchburg, VA, (successor in interest to MA/COM) and the City of Clearwater, providing for a three-month extension, authorize the associated purchase order in a not-to-exceed amount of $83,000, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On June 20, 2002, the City of Clearwater City Council approved a 20-year Service and Access Agreement with MA/COM for the maintenance of the Clearwater Radio System, including two communication towers and associated facilities. L3Harris is the successor in interest to MA/COM. L3Harris provides support and maintenance of the City of Clearwater’s Radio System and associated communication towers under the Agreement. The Agreement provides for quarterly payments, adjusted annually based on the Consumer Price Index (CPI) through the contract term, ending September 30, 2022.
Pursuant to Agreement, L3Harris manages licensed space on the two city-owned communication towers. Revenue generated from third-party tower tenants on the towers, which is due to the City, is deducted from the City’s quarterly payments to L3Harris for the maintenance services. Revenues have averaged approximately $5,000 per quarter.
On January 24, 2022, L3Harris entered into an agreement with the State of Florida (State) for management of the State’s Statewide Law Enforcement Radio System. Pursuant thereto, L3Harris was required to assign its license rights in one of the City towers, the Waste Pollution Control Plant Site Tower (also referred to in the Agreement as the “Dunedin Tower”), to the State via a Partial Assignment and Amendment of Site License Agreement (Assignment). The Missouri Road Tower remains licensed to L3Harris and L3Harris continues to be responsible for the maintenance and upkeep of both towers. The Assignment provided that at the end of the initial license term, on September 30, 2022, new site license agreements would be entered into for both towers separately, one to L3Harris for the Missouri Road Tower, and one to the State for the Dunedin Tower.
The Service and Access Agreement provides for one additional term of five years upon mutual agreement of the parties. During the proposed three-month extension, the City's management team will review the existing terms and conditions of the Service and Access Agreement to determine if there are any mutually beneficial updates that are needed to ensure that we have the most equitable partnership between the City and L3Harris. Additionally, the extension will allow the City, the State, and L3Harris the necessary time to finalize the new site license agreements for the renewal term.
The new extended three-month term would run from October 1, 2022 through December 31, 2022.
APPROPRIATION CODE AND AMOUNT:
These funds are available in the operating expense of the Garage Services Fund as budgeted each Fiscal Year.